Posted on: Thu 21-08-2025

N70,000 Minimum Wage Can’t Lift Nigerians Out of Poverty — US Report Reveals Grim Reality

A recent report from the United States government has cast serious doubt on the effectiveness of Nigeria’s new minimum wage, stating that it remains insufficient to lift citizens out of poverty due to currency devaluation and weak enforcement.

Key Findings from the 2024 US Human Rights Report

• The revised minimum wage of N70,000 per month is equivalent to $47.90, a figure that falls below the poverty income threshold.
• Despite the increase, many Nigerian states have refused to implement the wage, citing financial constraints.
• Labor law enforcement is weak, with too few inspectors and minimal penalties for violations.
• 70–80% of Nigeria’s workforce operates in the informal sector, where wage and hour laws are rarely applied.
• The law mandates a 40-hour workweek, annual leave, and overtime pay—but excludes agricultural and domestic workers.
• Enforcement of occupational safety and health (OSH) laws is also lacking, with most complaints requiring court filings.

Barriers to Workers’ Rights

The report also highlights systemic obstacles to unionization and collective bargaining:

• New trade unions must have at least 50 members and cannot duplicate existing ones.
• The Ministry of Labor can delay registration indefinitely, discouraging legitimate worker organization.
• Strikes are heavily restricted, requiring a majority vote of all registered union members and limited to specific labor disputes.
• All wage agreements must be registered with the National Salaries, Income, and Wages Commission, which decides their enforceability.

While the National Minimum Wage (Amendment) Act 2024 doubled the wage to N70,000, the report concludes that currency devaluation and poor enforcement have rendered the increase ineffective. Many Nigerian workers remain trapped in poverty, with limited legal protections and few avenues to demand better conditions.

---

---